In an interview published on Thursday, Kemler pointed to an Austrian auction of next-generation radio frequencies due in the second half of this year and the need to prolong existing frequency contracts.

"We presumably don't have (funds for this) in the Telekom group. That does not arise from current liquidity," he was quoted as saying.

"But we will employ capital market instruments. We have also authorized management to take steps on this."

Asked if he was referring to a hybrid issue of up to 800 million, Kemler said: "That is the range."